The sale of these gas assets in the Jonah and Lookout Wash fields is consistent with the company’s business strategy to focus on developing its two oil plays, the Bakken Formation in North Dakota, US, and the Niobrara Formation in Wyoming.
The transaction is expected to close by the end of this month and the sale will have an effective date of 1 January 2011.
The asset sale will cause Samson to recognize a tax loss that will offset some of the income tax liability it previously incurred by the sale of acreage in Goshen County, Wyoming, which was completed in November last year.
